Survey reveals take-home pay down £1,000

| March 28, 2011 | 0 Comments

According to a survey commissioned by BBC One’s Panorama programme, employees are £1,088 a year worse off than they were two years ago as take-home pay fails to keep in line with inflation.

At the start of this year, the typical British worker earned £20,149 - a drop of 5% from what they were earning in the middle of the recession.

Meanwhile, the research found that when inflation is taken into account, the average take-home pay is currently lower than it was in 2004.

The survey was conducted by the Centre for Economics and Business Studies to calculate how much worse off employees have become since wages hit their peak.

According to former Monetary Policy Committee member, Professor David Blanchflower, company profits have been low “so the ability of firms to pay has actually prevented wages from rising.”

Meanwhile, the research also found that around 659,000 households are struggling with their mortgage repayments.

If interest rates were to rise by 1% to 1.5%, an additional 36,000 households would struggle to keep up with their mortgage payments, the survey found.

Panorama: The Big Squeeze is on BBC One tonight at 8.30pm.

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